The days when Netflix could have been owned by the studios

[digitalbabe]

Per Hacking Netflix:

"The Studios Could Have Owned Netflix (and the World Would be Very Different Today)
The Wrap did some digging and discovered that the studios owned pre-IPO Netflix stock, and could have wound up controlling Netflix:

In the late 1990s, Warner Brothers made a deal with Netflix founder Reed Hastings to share revenues on DVD rentals in exchange for a significant number of warrants in the fledgling DVD-by-mail company.

At the time, Warners was looking for leverage against the Blockbuster behemoth's demands -- and as with other DVD pacts, studios followed suit, each taking pre-IPO took stock in Netflix, according to two individuals with knowledge of the deal.

Funny thing happened: following Netflix's 2002 IPO, the studios sold their stock. Within a year, none of the studios maintained a stake (Dreamworks was a late holdout).

“Netflix could have been owned by the industry,” said one of the dealmakers.

Blockbuster also could have bought Netflix for $50 million in 2000, and now Netflix is worth more than $8 billion.
"

 

[sloindahed]

Wow, I was just thinking about this today and how it's so easy and cheap to "rent" movies now compared to just a few years ago.

I remember when it cost around $6 to rent one movie at Blockbuster and you'd have to return it the next day; and now we can watch movies and whole seasons of TV shows without leaving our living room (or even standing up to put a disc in) for $8 a month for as many times as we want.

It's understandable that Hollywood/film studios are delaying their films from coming to Netflix by months 'cause it's such a no-brainer for customers where to rent from a price-standpoint.

I just hope Netflix doesn't give in to the pressure now or in the future and change their way of doing business because the reason they're this successful is because of how their currently managing it.